Why is market rising today? Sensex jumps over 700 pts, Nifty rises above 23,600. 7 key factors behind D-St extending gains

On Tuesday, the Indian stock market experienced significant gains, with both the Sensex and Nifty rising over 1%. The Sensex jumped 800 points, while the Nifty 50 rose above 23,650. This surge added approximately Rs 4 lakh crore to the total market capitalization of all listed companies, bringing it to Rs 486 lakh crore. Leading the gains were shares of IndiGo and HDFC Bank, which climbed around 3% each.

Major indices such as Nifty Auto, Nifty Financial Services, Nifty FMCG, Nifty IT, Nifty Private Bank, and several others also surged by more than 1%. However, Nifty Pharma experienced a decline. Overall, market breadth supported the bullish trend, with NSE recording 2,406 advances and 673 declines, while 89 stocks remained unchanged.

Several factors contributed to the market's rise today. Firstly, there are hopes that the central government may consider reviewing the structure of taxes on equity capital gains for foreign investors. Finance Minister Nirmala Sitharaman mentioned that the government would look into the request made by foreign investors to modify the levies on long-term capital gains (LTCG) for overseas investors, as reported in media.

This potential change in tax policy has been welcomed by investors, who see it as a positive development for the market.

Secondly, oil prices have eased, although they remain relatively low compared to recent weeks. Brent crude futures traded below $105 per barrel, while WTI Crude futures were below $97 per barrel. The recent talks between Iran and the US to resolve the ongoing conflict have led to a slight increase in oil prices, but caution is still advised as geopolitical tensions persist.

Thirdly, Apple reported its July-September quarter results, exceeding expectations with record revenue driven by iPhone sales and services. However, concerns about increased costs related to artificial intelligence (AI) dampened investor sentiment. Apple's CFO warned that the company's gross margin would slow slightly in the final stretch of the year due to higher memory costs and some expenses related to the rollout of Siri AI.

This news led to a drop in Apple's shares after hours, but the broader market saw optimism as India is being referred to as the 'Anti-AI' trade, where worries about the AI frenzy subsiding bring optimism to the market.

Other factors contributing to the market's rise include continued Foreign Institutional Investor (FII) buying, which added nearly Rs 3,115 crore to the market on Monday. The rupee also gained 0.26% against the US dollar, opening at 94.6550. With the approaching US elections, markets will closely monitor whether the administration maintains its diplomatic stance or if geopolitical tensions resurface.

Lower crude prices could provide near-term support to the domestic currency, with the rupee expected to trade in the range of 94.50–95.25. Lastly, analysts point to attractive valuations in large caps after a sharp correction in 2026 so far, presenting a more favorable risk-reward equation for investors.